One of the most common questions for aspiring entrepreneurs is whether they can start a company in the U.S. on visas like L-1, H-1B, or O-1. Surprisingly, you don’t even need a visa to start a company in the United States. However, what you can do after forming the company depends entirely on the type of visa and its associated work authorization. Let’s explore the possibilities and limitations of these visas for entrepreneurs.
L-1 Visa: The Intra-Company Transfer Path
The L-1 visa is primarily for employees transferring within the same company to a U.S. branch.
✅ Pros:
- Allows you to transfer to a U.S. office of your company or set up a new U.S. branch.
- Brings your family with L-2 visas, allowing spouses to work in the U.S.
❌ Cons:
- Requires a qualifying relationship between the U.S. and foreign entities (e.g., parent, subsidiary).
- Maximum stay is limited to 7 years for managers (L-1A) and 5 years for specialized knowledge workers (L-1B).
Can You Start a Business?
Yes, if the U.S. entity is tied to the foreign company. However, you must maintain an eligible role, such as a manager, within the qualifying structure.
H-1B Visa: The Specialty Occupation Option
The H-1B visa is designed for professionals with specialized skills and an employer willing to sponsor them.
✅ Pros:
- Easier to obtain than the O-1 visa and requires only a job offer related to your education.
- Allows employment in your field of expertise.
❌ Cons:
- Subject to an annual lottery; odds can be as low as 1 in 5.
- Employers must meet minimum wage requirements for the position.
- Maximum stay capped at 6 years.
Can You Start a Business?
Yes, but actively running the business is restricted. You can only perform duties if your company sponsors your H-1B, meets wage requirements, and you do not violate visa conditions.
O-1 Visa: The Extraordinary Ability Route
The O-1 visa is for individuals who have demonstrated extraordinary abilities in their field.
✅ Pros:
- No lottery system or annual cap, making it more predictable.
- No minimum wage requirement, allowing entrepreneurial flexibility.
- No fixed limit on the period of stay, as it can be renewed indefinitely.
❌ Cons:
- Harder to qualify; you must prove exceptional achievements in your field.
- Costs are higher, with legal fees exceeding $10,000 in some cases.
Can You Start a Business?
Yes, and this visa offers the most freedom. As long as you meet the visa criteria, the O-1 allows more autonomy to manage your company.
Do You Even Need a Visa to Start a Company?
Technically, no visa is required to start a company in the U.S. However, to work for the company or manage its day-to-day operations, you must have valid work authorization. Without it, your role must remain limited to non-physical activities like attending board meetings or signing legal documents.
Which Visa Is Right for Entrepreneurs?
Choosing the right visa depends on your role, company structure, and goals:
- L-1: Best for corporate transfers or setting up a branch of a foreign entity.
- H-1B: Good for employees transitioning to entrepreneurship if the company can sponsor their visa.
- O-1: Ideal for high-achieving professionals who want maximum flexibility for entrepreneurship.
While each visa offers a pathway for entrepreneurship, the right choice depends on your career stage, qualifications, and business goals. For those with extraordinary abilities, the O-1 provides unparalleled freedom. If you’re transferring within a multinational corporation, the L-1 is the best fit. Meanwhile, the H-1B offers a middle ground for professionals transitioning to entrepreneurship. Understanding these nuances can help you navigate the complex U.S. immigration system and achieve your entrepreneurial aspirations.
